BASIC MANAGEMENT THEORY Frederick Taylor - Scientific Management Frederick Taylor started the era of modern management.

He advocated a change from the old system of personal management based on subjective evaluations to a new system of Scientific Management that used objective criteria, such as worker output, to evaluate job performance. Taylor used actual timed studies that led lead to a best practices model and objective output expectations and standards. Taylor's most lasting legacy was the concept of breaking a complex task down in to a number of small subtasks, and optimizing the performance of the subtasks (i.e. piece work e.g. assembly line workers). These time trials in turn led to the strongest criticisms of Taylor. Many critics have pointed out that Taylor's theories tend to "dehumanize" workers. This is an interesting observation since Taylors intent in developing Scientific Management was to address what he perceived to be the harsh realities of the workplace that existed at that time. Taylor's work was strongly influenced by his social/historical framework. He lived during the Industrial Revolution, a time when autocratic management was the norm. Taylor turned to "science" in an effort to find a solution to the workplace inefficiencies and injustices of the period. Sport-related examples of Taylors Scientific Management theory in practice: Billy Beans Moneyball (evaluating players based on prior performance, as opposed to tools; commission sales paid to marketing staff) Human Relations Movement - Hawthorne Works Experiments The Hawthorne Studies, conducted by Elton Mayo, started in the early 1920's as an attempt to determine the effects of lighting on worker productivity. When those experiments showed a clear correlation between increasing the light level, more rest breaks, free meals, fewer hours in the work-day / work-week, etc. Their productivity went up at each change. To validate the results, the experimenters then looked at other factors that could have contributed to the increased productivity. Surprisingly, the experimenters discovered that it was not the actual physical changes that contributed to the increased productivity among the workers. Instead, the workers indicated that the enhanced group dynamics and social makeup of an organization were responsible for their higher productivity. The workers indicated they worked harder for management because by making these changes to the physical working environment, it showed that management cared and was concerned about the workers. This resulted in greater participation and involvement by the workers, greater trust and openness in the working environment and a greater attention to teams and groups in the work place.

Max Weber - Bureaucracy Max Weber attempted to do for sociology what Taylor had done for industrial operations. Viewing the growth of large-scale organizations of all types during the late nineteenth and early twentieth centuries, Weber developed a set of principles for an "ideal" bureaucracy. These principles included: fixed and official jurisdictional areas, a firmly ordered hierarchy of super and subordination, management based on written records, thorough and expert training, official activity taking priority over other activities and that management of a given organization follows stable, knowable rules. The bureaucracy was envisioned as a large machine for attaining its goals in the most efficient manner possible. Weber did not advocate bureaucracy, indeed, his writings show a strong caution for its excesses: "the more fully realized, the more bureaucracy "depersonalizes" itself, i.e., the more completely it succeeds in achieving the exclusion of love, hatred, and every purely personal, especially irrational and incalculable, feeling from the execution of official tasks" He also said, "By it the performance of each individual worker is mathematically measured, each man becomes a little cog in the machine and aware of this, his one preoccupation is whether he can become a bigger cog." Despite these concerns, it is clear that some form of bureaucracy is needed for an organization to run more efficiently and effectively. Douglas McGregor Theory X and Theory Y Douglas McGregor's Theory X assumes that people are lazy, they don't want to work, and it is the job of the manager to force or coerce them to work. McGregor's Theory X makes three basic assumptions: (1) The average human being dislikes work and will do anything to get out of it; (2) most people must be coerced, controlled, directed, and threatened or punished to get them to work toward organizational objectives; and (3) the average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and places job security above ambition. According to this theory, responsibility for demonstrating initiative and motivation lies with the employee and failure to perform is his or her fault. Employees are motivated by extrinsic rewards such as money, promotions, and tenure. In a sports-related context, examples of Theory X coaches might be Vince Lombardi or Phil Parsells. Theory Y suggests employees would behave differently if treated differently by managers. Theory Y assumes that higher-order needs dominate individuals. The set of assumptions for Theory Y is (1) the average human does not dislike work and it is as natural as play; (2) people will exercise self-direction and self-control in order to achieve objectives; (3) rewards of satisfaction and self-actualization are obtained from effort put forth to achieve organizational objectives; (4) the average human being not only accepts but also seeks responsibility; (5) human beings are creative and imaginative in solving organizational problems; and (6) the intellectual potential of the average human is only partially realized. If productivity is low and employees are not motivated, then it is considered failure on the manager's part. Again, extending the coaching analogy to this, Phil Jackson might be a good example of a Theory Y leader.

W. Edward Demming Total Quality Management Total Quality Management (TQM) is a management style that integrates of all functions of a business to achieve a high quality of product. TQM is a consumer oriented theory of management and involves continually surveying consumers and responding to consumer demand by producing products that reflect consumer wants and dislikes. The major hall-marks are customer satisfaction, quality as the responsibility of all employees, and teamwork. As an integrated method, it involves every aspect of the company. The entire workforce, from the CEO to the line worker, must be involved in a shared commitment to improving quality. TQM encourages employees to grow and learn and to participate in improvements, so it exemplifies a participative management style. TQM also encourages an ever-changing or continuous process, and emphasizes the ideas of working constantly toward improved quality. W. Edward Deming pioneered TQM. He did his major work in post-World War II Japan, and are credited with the major turnaround in the quality of Japanese products by the 1970s. In the 1980s both men were highly influential in the quality management movement in the United States. Peter Drucker Management by Objectives Management by Objectives (MBO) is a company-wide process in which employees actively participate in setting goals that are tangible, verifiable, and measurable. Management theorist Peter Drucker pioneered this style of management. MBO provides a systematic method of assuring that all employees and work groups set goals that are in alignment with achieving the organization's goals. Consequently, there is greater buy in by the employees in the overall course of action decided upon by management because they participated in the process. MBO also taps into the overall intellectual potential of the group. Overall organizational objectives are converted into specific objectives for employees. Objectives at each level of the organization are linked together through a "bottom up" approach as well as a "top down" approach. In this manner, if each individual achieves his/her goals, then the department will achieve its goals and the organization objectives will in turn be met. There are four steps involved in the MBO process: setting goals, participative decision-making, implementing plans, and performance feedback. Top managers work with middle managers and middle managers work with lower level managers to set goals for their departments. Each

manager then works with employees in the department to set individual performance goals. The participative decision-making step allows managers and employees to jointly set goals, define responsibility for achieving those goals, and set the evaluation process. Managers are allowed to implement their plans and control their own performance. This step of MBO utilizes every manager's expertise to benefit the organization and permits managers to continuously improve their skills. One of the primary functions of managers under MBO is to marshal resources to enable the employees to achieve the mutually agreed upon goals and objectives. The final step is to continuously provide feedback on performance and achievement of objectives. By periodically reviewing employees' performance goals can be modified or new goals can be set. This step complements the formal appraisal system because the continuous feedback throughout the year keeps individuals informed of their progress. This document was based largely on the material from the following two Web sites, and was modified and edited for this course by Professor David L. Snyder: http://www.kernsanalysis.com/sjsu/ise250/history.htm - dkerns@kernsanalysis.com Management Styles - organization, levels, system, examples, advantages, manager, company, business, system http://www.referenceforbusiness.com/management/Log-Mar/ManagementStyles.html#ixzz1ZGsyqEqG
2011 by David L. Snyder